Indian Economy News

Diwali 2025 sales hit a record US$ 68.77 billion, Indian goods see 25% rise: CAIT

Diwali sales in 2025 reached a record Rs. 6.05 trillion (US$ 68.77 billion), comprising Rs. 5.40 trillion (US$ 61.38 billion) in goods and Rs. 65,000 crore (US$ 7.39 billion) in services, according to a report by the Confederation of All India Traders (CAIT) released on Tuesday. This marks a 25% YoY growth from Rs. 4.25 trillion (US$ 48.31 billion). The report attributed the growth to recently reduced goods and services tax (GST) rates, noting that 72% of surveyed traders linked higher sales to lower GST on daily-use items. Prime Minister Mr. Narendra Modi's call for 'Vocal for Local' and 'Swadeshi Diwali' resonated deeply with the public, with 87% of consumers preferring Indian-made goods over imported products. This resulted in a sharp decline in demand for Chinese items and a 25% surge in sales of Indian-manufactured products compared to last year.
Among various sectors, fast-moving consumer goods (FMCG) accounted for the largest share of total sales at 12%, followed by gold and jewellery at 10%, electronics and electricals at 8%, and consumer durables, ready-made garments, and gift items each at 7%. The report also highlighted that trader and consumer confidence were high, with the Trader Confidence Index at 8.6/10 and the Consumer Confidence Index at 8.4/10. Both groups indicated that the consumption trend is likely to continue, supported by stable inflation, higher disposable income, and confidence in the national economy. The report recommended simplifying GST compliance, improving credit access for small traders and manufacturers, and developing logistics and warehousing hubs in Tier-II and Tier-III cities. It also noted that around five million temporary jobs were generated during Diwali in various sectors like logistics, packaging, transport, and retail services.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.